Is Eos Worldwide liable to withhold or deduct any amounts for Transfer Taxes?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
merated in this Section 4.12 shall also apply to any understated amounts as revealed by an audit of your financial records. You acknowledge that this Section 4.12 is not our agreement to accept any payments after they are due or our commitment to extend credit to, or otherwise finance your operation of, your Franchise. You further acknowledge that your failure to pay all amounts that you owe us when due constitutes grounds for our terminating this Agreement under Section 17, notwithstanding this Section.
4.13 Fees and Payments.
(a) Unless expressly stated otherwise, each payment to be made to us hereunder shall be free and clear and without deduction for any (i) currency control restrictions, bank charges, fees, duties or other transactional costs or (ii) applicable sales taxes, use taxes, value added taxes (VAT), goods and services taxes (GST), and similar taxes (as defined in Section 12.2(b) that are properly chargeable thereon (in each case, as applicable, "Transfer Taxes"). We will not in any event be liable to withhold or deduct any such amounts or for any claim, loss, damages, costs or payments whatsoever arising in relation to the withholding or deduction of such amounts.
(b) You are responsible for ascertaining if payments made to us or our affiliates under this Agreement require any withholding or deduction for present or future Transfer Taxes under applicable law, and are also responsible for remitting such Transfer Taxes in a timely manner to the appropriate taxing authority in each respective jurisdiction. If any such Transfer Taxes are payable on our (including our affiliates') supply of any goods or services to you, our fees will be increased to account for any such Transfer Taxes.
(c) If any amounts payable by you to us are subject to any such withholding taxes as required under applicable law, you shall promptly deliver to us at the time of payment all receipts of applicable governmental authorities for all such taxes withheld or paid. If you or any other person is required by any law or regulation to make any deduction or withholding (on account of a Transfer Tax or otherwise) from any payment for us or our affiliate's account, you shall, at our option, either: (a) together with the payment, pay such additional amount as will ensure that we or our affiliate receives (free and clear of any Transfer Tax or other deductions or withholding) the full amount which we would have received if no such deduction or withholding had been required; or (b) make such payment having taken into account the relevant deduction or withholding (on account of Transfer Tax or otherwise).
(d) Transfer Taxes are calculated by multiplying the fees payable by you (excluding the amount payable as a Transfer Tax) for the taxable supply of goods or services by the prevailing rate.
(e) You shall fully and promptly cooperate with and assist us to provide all information and records we may request in connection with any application by us to any taxing authority with respect to Transfer Tax credits, exemptions or refunds available for any withholding or other taxes paid or payable by you.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, Eos Worldwide will not be liable to withhold or deduct any amounts for Transfer Taxes. The franchisee is responsible for ascertaining if payments made to Eos Worldwide or its affiliates require any withholding or deduction for present or future Transfer Taxes under applicable law. The franchisee is also responsible for remitting such Transfer Taxes in a timely manner to the appropriate taxing authority in each respective jurisdiction. If any such Transfer Taxes are payable on Eos Worldwide's supply of any goods or services to the franchisee, the fees will be increased to account for any such Transfer Taxes.
If any amounts payable by the franchisee to Eos Worldwide are subject to any such withholding taxes as required under applicable law, the franchisee must promptly deliver to Eos Worldwide at the time of payment all receipts of applicable governmental authorities for all such taxes withheld or paid. If the franchisee or any other person is required by any law or regulation to make any deduction or withholding (on account of a Transfer Tax or otherwise) from any payment for Eos Worldwide or its affiliate's account, the franchisee will, at Eos Worldwide's option, either pay an additional amount to ensure that Eos Worldwide or its affiliate receives the full amount, or make such payment having taken into account the relevant deduction or withholding.
Transfer Taxes are calculated by multiplying the fees payable by the franchisee (excluding the amount payable as a Transfer Tax) for the taxable supply of goods or services by the prevailing rate. The franchisee must fully and promptly cooperate with and assist Eos Worldwide to provide all information and records Eos Worldwide may request in connection with any application by Eos Worldwide to any taxing authority with respect to Transfer Tax credits, exemptions or refunds available for any withholding or other taxes paid or payable by the franchisee. The franchisee is required to be registered for Transfer Tax purposes as required by applicable law, charge and collect all applicable Transfer Taxes on applicable sales, revenue and receipts of any kind derived from the operation of the Franchised Business and properly remit same to the relevant taxation authorities.